Loan-to-Value Ratio (LVR)

What does this mean for my home loan?

Your LVR can impact your loan options and the interest rate you qualify for. Some interest rates are only available if your LVR is under a certain percentage.

If your LVR is over 80%, you may need to pay Lender’s Mortgage Insurance (LMI).

What is Lenders' Mortgage Insurance (LMI)?

LMI is a one-off insurance cost that is added to your home loan to protect the lender against any loss on the loan if you default on your repayments.

If your LVR is above 80%, you are required to pay for LMI unless you are eligible for certain waivers. The higher your LVR, the higher the LMI cost is likely to be.